Expensive car tax refund denial by DVLA

moneysavy2

hi, new here but wanted to share my news. This morning I received a new V5 for my electric vehicle that I bought in January, I paid £605 vehicle tax, due to the recent budget, it has been reduced to £200 for vehicles below £50k from 1 April 26. DVLA are not issuing automatic refunds for what you have already purchased, so to get around this, you have to SORN your vehicle to receive your refund (substantial amount) and then trot uptown your local PostOffice and purchase new car tax with your new V5. An admin snowball for everyone, but this could have been sorted with an automatic refund by DVLA.

I would recommend doing this at the end of the month so not to pay tax twice for April, but I wanted to check that it would work. Go get that refund folks!

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Are you sure that you will get the additional rate refunded?

You paid it before April when the £425 additional rate was in force- the total tax would have been £620, and AIUI the additional rate was never refunded if you surrendered the tax, only the standard VED.

born_again

https://forums.moneysavingexpert.com/discussion/6664264/expensive-car-tax-refund-denial-by-dvla

How old is the car & value @ purchase.

Iceweasel

Wishful thinking.

That's not how it works.

Only the standard VED is refunded when you SORN.

Unless of course they've changed the rules and not publicised it.

paul_c123

OP is a little premature………..let's see if he gets refunded the expected amount (I doubt it). If not, he's lost the advantage of having tax renewed "just before" April instead of "just after".

moneysavy2

All that you say could be correct, but that was the advice given by DVLA. I shall wait to see what comes through and let you know.. 😕

moneysavy2

not an authority, but in AI, I trust. Lol

moneysavy2

Retail was £46800, I paid £25999 with 780 miles and two months old. Bargain. Toyota bz4x. 75 plate. No accident car from main Toyota dealer. I get 6000 miles from £100 of electricity through octopus go

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https://forums.moneysavingexpert.com/discussion/comment/81964688#Comment_81964688

The v149 I have downloaded & saved says that luxury car tax from 1 April 2026 is £440, and last year it was £425, not the £410 that AI claims….

https://assets.publishing.service.gov.uk/media/69a83810dcb774b435560510/v149-rates-of-vehicle-tax-for-cars-motorcycles-light-goods-vehicles-and-private-light-goods-vehicles-april-2026.pdf

AI agrees with the OP's claim of paying £605 though (£195 + £410), so maybe it is dot gov that is wrong (it wouldn't be the first time)

If the car was pre-reg two months prior, then the OP would have paid the second licence at two months not 12 which brings the 5 years of additional rate forwards 10 months.

moneysavy2

cheque came through, £413.33. Happy days.

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Result!

8 months refund including luxury car tax. Surprised me that you got the luxury tax back though.

You did pay £425 + £195, not the £405 AI said. (£413.33 / 8 x 12 = £620)

Thanks for letting us know.